WHAT IS THE BEST WAY TO BUILD UP YOUR CREDIT SCORE AFTER BANKRUPTCY?

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After bankruptcy, clients tend to want to know how to start building back up their FICO credit score. Here are the main 4 tips I suggest: 1. Pay every bill on time every time. Payment history and timely payments account for approximately 1/3 of your credit score. 2. Decrease your outstanding balances every month. The total amount of debt owed …

WHAT CAN I EXPECT IF I FILE CHAPTER 13 BANKRUPTCY?

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First, check with an experienced bankruptcy attorney to make sure Chapter 13 bankruptcy is the best option for your particular situation. Chapter 13 bankruptcy has many benefits including stopping a foreclosure in the state of Illinois as long as it is filed before the ‘sheriff’s sale’. It can prevent car repossession. The main benefit is that it consolidates all of …

Should I wait on my tax refund to file bankruptcy?

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Often the constant calls of creditors and struggles to pay monthly bills make filing a Chapter 7 bankrutcy an urgent matter. However, there are certain situations where it is best to wait to file your case, such as a large pending tax refund.  You are likely to be better off to spend down the refund on ordinary living expenses prior …

Can I Object to the Creditor’s Proof of Claim?

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Yes. A proof of claim is a written statement where a creditor lays out proof that a debt is owed. This may be accompanied by itemized statements.   If a debtor feels that the claim was filed for the wrong amount, he or she can file an objection to the claim.The bankruptcy court may choose to disallow that claim, determine …

Can an Immigrant file bankruptcy?

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The bankruptcy code defines who may be considered a debtor and eligible to file a claim. There is no requirement that a debtor be a United States citizen. As long as an immigrant was properly admitted and legally allowed to remain, he or she is eligible to file Chapter 7 bankruptcy.  The courts will still require each filer to provide …

What is an Automatic Stay?

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Upon filing a bankruptcy case, the court automatically issues a restraining order, formally referred to as ‘the automatic stay’. Under section 362 of the United States Bankruptcy Code, the stay begins at the moment the bankruptcy petition is filed. This prevents any of your creditors from continuing to pursue any collections efforts including phone calls, wage garnishments or lawsuits.  The …

Will a bankruptcy filing affect my ability to get a job?

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While government agencies are prohibited from considering an applicant’s bankruptcy during the hiring process, no such constraints apply to private employers.   A bankruptcy filing may be relevant to employers when they are considering applicants for jobs that require handling money or financial tasks like bookkeeping, accounting, and payroll. During the application process, many private employers conduct a routine credit check …

What is the difference between a secured and unsecured creditor?

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A “secured creditor” is a creditor that has a lien on an item of your property. The debt is secured by the creditor’s interest in the property. A lien is an interest in property that allows a creditor to have your property sold to satisfy your debt to that creditor. Examples of secured creditors are mortgage lenders and car lenders. …

Can a creditor still demand payment after I file bankruptcy?

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No, efforts by a creditor to collect a debt you owe as of the filing of your bankruptcy petition are a violation of the automatic stay.  Attempts to repossess your property without the permission of the bankruptcy court are also not permitted after you file for bankruptcy protection. If a creditor repossesses any property after you file for bankruptcy, the …

Can I be fired from my job for filing bankruptcy?

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No, your employer may not fire you solely because you filed for bankruptcy. Your employer is also prohibited from changing the terms of your employment (reducing your salary, limiting job responsibilities, demoting your position or changing your title) simply because of your bankruptcy filing.  However, if the employer has other valid reasons for taking these actions, such as tardiness, dishonesty, …